The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1887-05-11
SOME oLD-TIME ssBooMs. !"

might take on final and fatal syllable
and become a boomerang, suggests that
there may be some interest to the general
reader IN tracing the course and conse-
quences of some of the most conspicuous
of the "booms" of olden times. Human
nature is as Interchangeable as the eternal
hills. The follies of one generation reap
pear in the next, and follow on the same
track from age to age. The experience of
the past teaches nothing to to-day, except
as the philosophical historian applies it.
The allurements that fooled the victims of
the South Sea scheme" are just as potent
now as they were LIS years ago. The his
tory of projects that attract the curiosity or
cupidity of men will teach nothing and
harm nobody now, but they are not with
out interest as illustrations of the princi-
pie in question, that civilization, however
it may change the conditions of society,
does not in the least change the qualities
of its members. SIS not one man as good
as another" asked the orator of a political
meeting. EYES," answered an Irishman,
''and better too" 1t does not matter at
which end of the historical line you be-
gin, you will find one man much the same
as another, or little more so. The wise
men of this generation have gone as wildly
into preposterous but promising specUla-
tons as the fools made by Harley or John
Law. Dickens didn't overdo the thing
much when he organized his Universal
Hot Muffin and Crumpet Company" and
Hudson, "the railroad king" as he was
called certainly made as many victims of
absurd or rascally operations as any spec
ulator hundred years before.
This moralizing has no reference to the
'gas BOOM here, or any speculation any
where, but refers only to the tendency of
human nature to run wild under provoca-
tons of big profits on small investments,
directed by the managing genius of some
man who understands human nature at
least, if he understands nothing else. If
Livy had recorded all the incidents of the
expulsion of the Tarquins, we suspect that
the abandoned royal property would have
been Shown fruitful source of specula-
ton. Lots in the Campus Martius" would
are now doing in the real estate specula-
tons of Muncie or Kokomo. We don't
intimate that the speculative impulse
might be as weak or temporary, but that
the Roman, like the Hoosier, would be at
tracted by the chance of making money.
Solid benefit in the progress of "boom"
lies in allowing it to develop itself by nat
ural evolution" If 1t is hurried by spec
ulation it is as likely to smash the golden
egg" as to hatch it into marketable
poultry.
The two most conspicuous cases OF specu-
lative ''boom'' of which we have any record
began within few years of each other, one
in England, the other in France, but both
originated by Englishmen in the first
quarter of the last century. The South
Sea scheme" was the suggestion of Harley,
Earl of Oxford, with the very honest pur-
pose of providing for the payment of the
floating national debt, amounting to $780,
OOO, 600, and thus improving the credit of the
Government. An association of prominent
merchants took this debt upon condition
OF the payment by the Government of per
cent. interest, which the Government was
to assure by the performance of certain
duties. AS an incident of this great
anteed to the association a mon
opoly of the trade to the South Seas,
whence came the name of the South Sea
Scheme" This was in I'LL, the association
of merchants being then incorporated as
the South Sea Company" The expecta-
tons OF profit from the trade with South
America gave the company 'boom" such
as few business operations have ever had.
These expectations never found any fulfill
ment but the expedition of single ship
six years after the company was formed,
but the Importance of the company re-
meined unchanged. 1t was great none
tary affair, and though nothing was done
to carry out tt e purpose ofits organization,
it remained as solid and as sure structure
in general estimation as if il had ships all
along the South American coast from Cape
Horn to Panama.
It's stock constantly improved. The war
with Spain in 171s, though fatal to all
hope of advantage from sharing Spanish
trade with the Spanish colonies, did not
disturb it. The disastrous failure of Laws
mississippi Scheme" which had been put
in operation some years later, made no
difference to the devotees of Mammon in
the South Sea Scheme" In 1920 they
saw a chance to push speculation to point
never attempted before and probably
never, certainly but rarely, since. They
proposed to assume the whole national
debt of Great Britain on guaranty of 5
per cent interest for seven and half
years, when the Government, at its pleas
( ure, could resume or redeem the debt
and reduce the interest to 4 per cent.
| A debt held at per cent. must
have been strong tempta ton
TO the financisrs of one hundred aud
sixty years ago. So it is hardly to be won
dered at that Parliament accepted it by q
vote in the Commons OF liz to So and in
the Lords by SO to IL. The wisest men OF
that day protested in both houses against
so dangerous q measure as the assumption
of national debt by private corporation,
but IL was all for nothing against the
strong but decisive attraction of q cheap
| relief from O national burthec- Sir Robert